About this Show

Mad Money

News/Business. (2013) New.

NETWORK

DURATION
01:00:00

RATING

SCANNED IN
San Francisco, CA, USA

SOURCE
Comcast Cable

TUNER
Virtual Ch. 58 (CNBC)

VIDEO CODEC
mpeg2video

AUDIO CODEC
ac3

PIXEL WIDTH
528

PIXEL HEIGHT
480

TOPIC FREQUENCY

Herbalife 20, Ackman 7, Jim 7, America 5, Loeb 5, Boeing 5, Cramer 4, U.s. 3, Darden 3, Lexus Ls 3, Jim Cramer 3, Humira 3, New York 3, Heaven 3, Michael Johnson 2, Pepsi 2, Ackerman 2, Hartford 2, Connecticut 2, Aig 2,
Borrow a DVD
of this show
  CNBC    Mad Money    News/Business.  (2013) New.  

    January 17, 2013
    6:00 - 7:00pm EST  

6:00pm
final trade. mike? >> one week for apple earnings. >> tim? >> brazilian utilities have struggled, but ebr is coming back. >> guy? >> we've been talking about this phillips 66 psx for awhile. goes higher. >> b.k.? >> you want to buy the australian dollar, fxa. >> dr. j? >> noble energy. ne. it's a driller and it had unusual activity and big buying at the 40 and 42 strikes. >> all right, i'm melissa lee.
6:01pm
thank you for watching. back here again at 5:00 tomorrow for "options action," followed by "money in motion." meantime, don't gomotion." "mad money" with jim cramer starts right now. >> i'm jim cramer. welcome to my world. you need to get in the game. stearns are going to go out of business and he's nuts, they are nuts, they know nothing. i always like to say there is a bull market somewhere. "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends, i'm just trying to make you a little money. my job not just to entertain, put it in context, teach and educate. call me 1-800-743-cnbc. all right. sometimes you just have to don the old bear costume, put yourself in yogi's hat or even boo-boo's paws to understand this market. the dow roaring 85 points, and
6:02pm
nasdaq climbing .59%, happy days here again. it's one of those days. see, we're always trying to understand the coloration of the market. but sometimes we literally can't do so unless we go to jelly stone national park and get all ersine about it. when you own a stock and something terrific happens but the stock goes down anyway. what goes through your mind? perhaps you say maybe the news isn't as good as we thought. or perhaps i got to do more homework. maybe this news was already baked into the stock and that's why it didn't go higher. however, far more likely that you would be emotional about it. would you say, you know what? i give up. all that homework, all that good news, all those positives, they didn't matter. this just must be a horrible moment for the market, and it is a huge bear phase. that's where we are right now. huge bear phase, and i'm not going to buy anything until this phase ends. in fact, i'm a sell er let's tun
6:03pm
that whole thing on its head. how about if you are short a stock of a company that had its product splashed all over the nightly news because it's faulty, catches fire, could be disastrous. betting against a company where the most important product it has is being taken out of service because of the danger to humans and the buyers of your product are furious at you, because are you costing them millions of dollars a day? how about if your wagering that a stock is going to get crushed and you wake up to find the biggest product recall in history, mandated by the most important safety agency on earth? would you bet against that stock is a short sell? you think stock would be down 5%, 10%, 20%, maybe cut in half? pretty realistic, right? how about if the stock is bowing and it actually rallied on the faa ban today? almost a dollar for heaven's sake. the faa news turns out to be a buying opportunity.
6:04pm
what would you say if you were short this tire and it rallied 10% during the hideous separate of bad news about its jumbo dreamliner and the stock only couple points off the 52-week high? you know what you would say? you would throw up your hands and scream i give up. go buy the boeing back if it isn't going to fall in the horrendous parade of bad news, what the heck will bring this down? what kind of superpowerful bull market is this? and how can you afford to stay short, when the next thing isn't about another fire or grounding but a fix for the defective lithium ion battery. the plane is grounded for heaven's sake. no more bad pictures and no more smoke in plains and no more sliding down chutes. the plane is now out of service. out of service planes do not catch fire and do not have chutes that let people slide down to escape with their lives. no, the next thing you hear,
6:05pm
boeing, new battery source, bring it on, ready to fly. and thanks to the strength of the global economy no, airline can afford to cancel an order with boeing. airbus sold out for years. and you can't get back in the queue if you cancel. you will be stuck with older, less fuel efficient planes to deal with a higher priced oil environment when you can fill every seat have you and then some. boeing, the single greatest short of our lifetime, frankly, actually rallied 92 cents today. a bear's worst nightmare, which, of course, is there for the single best possible dream. for a bull. now, let's extrapolate the story. we were suppose supposed to have a horrendous, hideous economy. those guys real downers. why? washington gridlocked, confidence down, horrible down there. president, republicans, care less about the economy. supposed to be crushed,
6:06pm
absolutely annihilated about worries of the upcoming debt ceiling and laid to waste by the end of the tax holiday. rich people stopped dead in their tracks by new tax hikes. one so steep we were supposed to switch to peanut butter and jelly sandwiches rather than dining at three-star restaurants. pass the skippy, keep the foie gras. we find out we had the highest housing starts since the boom, double where we were not that long ago, and the analysts were determined to tell you housing is about to go all tepid, numbers don't fit into the scenario, not a negative one and that's the story of the market right now bullish backs getting in the way of the bearish story. now, i will tell you on any given day, we're capable of a serious swoon and we are due for one. holy cow. maybe dow and intel not so hot tonight can cause one sell, sell, sell. this feels like a moment like the mid 1980s where the bulls
6:07pm
areaa lay boeing. it seems like when i was a young, curly haired kid. i want to see the amazing con colombia ra glomerate. one of those rare things, when you can get an audience with an investment titan. he heard i had a hot hand. he wanted to know what i was thinking. he wanted to know what i was buying. i went in, trying to remember. a bunch of stuff. i went in, said not facetiously mind you. i like coca-cola at 90. and he said why? i know the story ice cold. used to sold cold cokes at veterans stadium, but my reason can be encapsulated simply. stocks that trade at 90 go to
6:08pm
120. he laughed. and threw me out of my office, just started shaking his head ever so wisely. callow youth. i saw him not so much longer, i was xwrefz xwers impressed with. and all 90 stocks go with 120. he didn't have the heart to tell me what a raving lunatic glad hander, and not long, he invited me back to my office. merck went to 120. i said what's next? 3m and then waste management and pepsi, coke, reebok, 90 goes to 120. anyway, at a certain point i knew i had a good run. and ridiculous, and what mattered was i identified the animal spirit that would lift
6:09pm
stocks when everyone figured it would be a matter of time that the market collapsed. a few years later, the crash of '87. made a ton of money buying stocks that went to 90, it meant they would go to 120. coke, pepsi, whatever. but it happened. just like chipotle could get hit and the stock rallies 10 bucks today? asml, a semiconductor equipment, a nasty horrendous number, buyers rushed in and rallied to a 52-week high. this sheer t here is the bottom line. get a boo-boo out, what's going on in jellystone national park. if boeing didn't go down on the biggest product recall in history, you have to be fearful of betting against any stock. and heaven forbid if boeing which closed at 75 trades to 90,
6:10pm
because stocks that trade to 90, you know the rest of the sentence. all right. how about dante in massachusetts? >> caller: hi, bag massachusetts minute man booyah to you. >> i'll give you a patriots booyah, they're pretty good. go ahead. >> caller: with all of the issues in boeing, if the sector tran transdigm wouldn't be better? >> we decided to sell the boeing. and they are doing swimmingly. united technologies, honeywell, all make a lot of sense. i ple bless the trade and investment. it's a multiyear cycle. jake in new york. jake. >> caller: jim cramer, how are you doing today? >> couldn't be better. how are you? >> caller: i'm doing pretty good. i'm calling about panera bread today. i hopped on the stock's bandwagon and i think it has fwabulous growth potential.
6:11pm
but with news on chipotle that food costs are rising, do you think the growth is sustainable and whether this stock is a buy in 2013? >> let's distinguish that. chipotle was expensive stock. both are expensive on price per earrings basis but not on growth basis. panera says very little inflation pressure on their particular products. they have pass ted on price increases. right now, both up a lot. but panera is less expensive with chipotle with a better growth path. joey in flea. >> caller: hey, jim. what are your thoughts on usac? should i put my money in something like this or cvr refining? >> i like cvr refining. my friend dan dickert, knows refining stocks better than anyone likes this one. i trust him. i think that's for you.
6:12pm
any given take, the market is capable of pullback. but bullish backs are given the bears a pretty hard time and making it a pretty tough time for those who are trying to make a bearish bet. "mad money" back after the break. coming up, job opportunity? economic optimism is hoping to tick down unemployment across the country. but as payrolls rise, so do the stocks of stepping companies. be careful. not all of these recruiters are cut from the same cloth. cramer identifies the right candidate, next. and, later, herbal cure? some of the street's most recognizable money managers are engaged in an all-out wary shares of herbalife, as this plays out in the limelight, are investors missing a more profitable picture occurring backstage? stick around.
6:13pm
don't miss a second. tweet us at #madtweets, or give us a call at 1-800-743 life cnbc. miss something? head to madmoney.cnbc.com.
6:14pm
6:15pm
6:16pm
last week i introduced you to my top ten themes for 2013. and tonight i want to tell you about a red-hot bull market. getting a major boost from one of these themes, i'm talking about the incredible rally in the temporary staffing companies. companies that provide temps to other businesses and how it's being fueled in part by the pending implementation of obama care next year. which is one of the themes i told you about last week, the government made me do it theme. the staffing companies are in
6:17pm
flago right now. and i think they'll stay that way for the rest of the year. i think in part because of the affordable care act. they are ultrasensitive to changes in the labor market. temporary employment is more cyclical than regular labor market. first to be hired when the economy comes back. and coming back is exactly what the economy is doing right now. just today we saw the jobless claims drop to the lowest level in five years. >> house ofre. >> full-time employment up 1.4% in 2012, the total number of temporary employees increased by 6.2%. that rapid growth is expected to continue in 2013. the street is looking for 5% growth in temporary employment this year. however, i think that number could ultimately end up being conservative thanks to the affordable care act. aka obama care. once that goes into affect in 2014, companies that employ more than 50 full-time workers will
6:18pm
need to provide employees with expensive health care coverage or pay $2,000 on to $3,000 penalty. businesses of all sizes are searching for ways to cope with the law, and the easiest way to avoid paying expenses is to hire more temps. see, to qualify for health care coverage under the affordable care act, they are more likely to hire temp employees. you will have try to have fewer than 50 full-time employees so you don't have to rely on obama care. and small businesses aren't alone in not wanting to cover health care costs. if you are a lark elarger busin much more likely to hire part time workers to avoid paying more for health insurance. obama care kicks in starting 2014, the companies need to start making ajustments now? the law has a 12-month look back
6:19pm
or measurement period for the purposes of figuring out how much each company will be on the hook for. 2013 is a great year for the temporary staffing business. the question is, how do you play it? commercial stfing companies that connect companies with lower skilled workers, companies like true blue, kiel services and man power and staffing companies that provide workers with higher level skill sets like robert heft, on assignment and resources connection. we want the higher skill plays. a massive skill shortage in this country, and even though the job market is far from being in good shape, there are still high demand for skilled temps, people with information technology skills, accounting skills, engineering degrees and highly skilled workers higher to recruit, they carry higher margins for staffing companies. the way i just said that makes it sound like these firms are involved in human trafficking. so let me explain how this works. when a staffing company gets a
6:20pm
temp a job with one of their clients, there is a spread between what the employer pays and what the temp receives, so the employer might pay $22 per hour, but the temp would say $18 an hour, and the staffing company pockets the $4 spread. with higher skilled workers, that spread, which some of you might have heard of this weekend, is called the vig, larger. so we need to choose among the three high skill staffing plays much. robert ha we want to focus on staffing plays that cater to smaller companies. that narrows it down to robert half and on assignment. which both focus on smaller companies. and within this little group, i would say robert half, rhi for you home gamers, is by far the best of breed play. some of the highest gross margin in the industry. 40%.
6:21pm
and and on assignment and resource connection are in the mid 30s. robert half has the strongest growth opportunities. they provide back office support and i.t. these jobs are not crucial to a company's core operations and a higher chance they will be outsourced to temporary workers, hence, why this is indeed the fastest growing category in the industry. on assignment more focused on the health care sector, look there could be some upside, with the work created by the implementation of obama care. it doesn't have the same growth as robert half. how about the numbers? valuation? we have to check these things. robert half, 19 times taernearn. resource connection, not in the same league. for 16 times earnings, substantially lower 13.5% growth
6:22pm
rate. you know how important growth rate is. when you take growth rates into account, oddly, because it's best of breed, robert half slightly cheaper than on assignment and resource connections, even though hands down i think superior company. of course, this is the problem. all right. the stock -- it's bag run. up 26% in the last two weeks. and flirting with new highs as we speak. but the move has only just begun. what am i going to do? it could go much, much higher before it gets really expensive. so here is the bottom line. temporary staffing companies on fire courtesy one of my top ten themes for 2013. companies dealing with the implementation of obama care. and i think this rally, i think it's early. and i think robert half, it by far the best way to play it. after the break, i'll try to make you more money. coming up, herbal cure? some of the street's most recognizable money managers are engaged in an all out war over
6:23pm
shares of herbalife. is this stock market soap opera plays out in the limelight, are investors missing a more profitable picture occurring backstage? stick around, cramer clues you in. what are you doing? nothing. are you stealing our daughter's school supplies and taking them to work? no, i was just looking for my stapler and my... this thing. i save money by using fedex ground and buy my own supplies. that's a great idea. i'm going to go...
6:24pm
we got clients in today. [ male announcer ] save on ground shipping at fedex office.
6:25pm
♪ ♪ ♪ [ male announcer ] some day, your life will flash before your eyes. ♪ make it worth watching. ♪ the new 2013 lexus ls. an entirely new pursuit. if you watch the show for let's say more than just the last six months, would you know i used to have michael johnson, the ceo much herbalife on pretty
6:26pm
often. there have been questions, accusations about the way herbalife makes its money. questions about where the company's product, it's nutritional supplements, actually end up. is it a multilevel marketing corporation? a distribution business where people are paid to get more distributors and not to sell the product to individuals? a scheme so to speak? or is it up and up seller of delicious, potentially weight reducing supplements, using a nonretail method of distribution, that is, individuals try to sell the product one-on-one or in a club like setting. i haven't been featuring them, the fun mentals of company are a side show to a much bigger battle, a battle between hedge funds. we've got one saying the company is basically a fpyramid scheme, no business being in business. and another hedge fund manager
6:27pm
says it's a legitimate business, and the stock is darn cheap. the bashing hedge fund manager has waged a war using our air and everyone else's and ink too to say that herbalife should be zero. and any authorities need to put this company down, like the dog that it is. ackerman short 20 million shares and he is adamant the company will not survive once everything about it is known. in the other corner of this business section boxing match, is dan lou, the manager of third point. like ackerman runs billions of dollars and the last filings, owns more than 8% of herbalife. even though it has had a magnificent move. who do i sympathy right? you know me. i don't care. i avoid battleground like the plague. don't buy.
6:28pm
and i want you to avoid battleground too. why? because they are dangerous places that cost me a lot of money over the years. that's what they do. in the last few days, i'm thinking the balance of power in this battle has shifted toward loeb and the longs versus ackman's short bid. herbalife declined 1.54 on an up day for the market after herbalife announced better than expected earnings. what's happening? why am i not dissuaded? the accusation that it's one big pyramid scheme is the need for some entity in the u.s. government or state government to take up the cause. i don't think that the stock can go to zero unless the justice department attempts to shut it down. he it's clear that ackman
6:29pm
himself needs to have the help of the government to make those charges matter. i don't think he will get one powerful enough to stop herbalife's growth, maybe slow it, but not stop it. slowing down may not even matter. the justice department, ever since it shut down arthur anderson at the time of enron by indicting the firm has never gone after a company with the idea of wiping it out and cause thousands of jobs to disappear. and ch is exactly what would happen. the stc, i don't think they will take the kind of action that ackman needs or wants. i believe it wants as much disclosure as possible. and i think herbalife is doing that. i don't think the s.e.c. will find anything that can be referred to justice for criminal prosecution. so my view is that ackman has a weak ally, partner in the government. even cnbc's own herb greenberg, a fabulous documentary that you
6:30pm
can see online, selling the dream, cnbc.com, has raised legitimate and i think frankly troubling questions about herbalife's business practices. but loeb has powerful allies and they are real. carl icahn has taken a stake in herbalife, and so company the state of play. ackman a fickle potential ally in some entity of the government not nearly as motivated as he is to take action against herbalife. and loeb has kacarl icahn. that's all well and good. a battle royale between rich people over herbalife. the fundamentals, this morning, herbalife is making a ton of money making supplements, particularly overseas, and the ceo has done an amazing job of making distributions in mexico. where it's like selling weight
6:31pm
watchers, nutritious, good tasting, helps you lose weight. a terrific pitch. the numbers say it's resonating. you can argue that tactics that the company uses, uses a nonretail format that allows it to selling to other people, including those who sell the product to others may not be your cup of tea. you could also argue that the company admitted today that ackman's attack is costing it money. could be elevated as it defends itself. that's bad. you have to factor in the possibility that the publicity could hurt the recruitment of additional distributors, at least in the u.s. not following that closely in south korea. you cannot argue the company is doing poorly or not executing well. this morning's preannouncement irrefutably that herbalife is raking it in. you can't argue that they need cash or hurting for distributors or getting killed by bad publicity. brings me perhaps to the most
6:32pm
important point of the story. the value that i can add to it. because herbalife has a ton of money and because the cash flow is strong, ceo michael johnson can buy stock back in the open market, hey, look, even take the darn thing private. used to be private if he wanted to. and in two days, he will be able to return to the stock market. s.e.c., with $1 billion to start purchasing shares hand over fist. only used a small portion. company is no stranger. six years ago, had 145 million shares. now only 108 million shares. and 8 million by loeb and 20 mill shares short by ackman. johnson is capable of being in an ally of monstrous propositions. the mechanics of the stock market itself. the buyers in the stock market are able to take stock and put away. the short sellers have to borrow stock from the owners to sell it, and then hopefully buy it
6:33pm
back for a profit. if the shorts can't borrow the stock first, they will be able to cover, wall street speak for buying it back and closing out the position. i have been in that position, where i couldn't find stock and the broker doing the trade literally went into the open market, bought the stock back that i had shorted, and closed out my short position at much higher prices than i shorted it at. it was vicious. it crushed my quarter. i was helpless to stop this activity. i was short. i couldn't find the shares to borrow to those who were buying it. hey, it's against the rules. if loeb and his allies buy stocks and there is an aggressive buyback from herbalife, the same thing that happened to me could happen to ackman, a real squeeze and a terrible situation for any short seller. is he not in control of his own destiny. none of this would matter if herbalife was doing poorly. losing a huge amount of money, could go bankrupt. as any company can be. but right now, that's clearly
6:34pm
not the case. yes, it's true, accidentman might be able to attract justice department interest. that's not likely. and a gigantic class action suit by distributors and former distributors and i don't known that really accomplishes accidentman's goal either. some congress people, call it hearing, investigate company's practices, could be a yawner. in the end, this battleground comes down to the government, as an ally, versus the unfriendly mechanics of the market and fundamentals, that contest, i had take the side of the mechanics and the fundamentals any day of the week with herbalife, the company itself has become a giant trophy for hedge funds, and they can be as feckless and fickle as they want to be. loeb could decide right now, watching the show, you know what? i'm going to blow ow of that stock in a moment's notice. he can declare victory tomorrow in the next swoon. none of the things can be gains. you need to approach as a spectator only. the finances really did matter and they don't because of the
6:35pm
egos involved, i would be a buyer not a seller. and herbalife has firepower. ican has firepower, loeb has firepower and ackman only sold a lot, and maybe could sell a lot. and he could cause the short squeeze i still feel 23 years after that near career-ending event. the nasty buy in on my short. and if it matters, a year later, stock i was short, a bank it closed. yeah, just closed. went to zero. i was right, but i never got the promised land of profit. scott in new hampshire. scott. >> caller: hi, jim. a warm booyah from snowy new hampshire. >> i like that. kyle loves to ski. how are you, kyle. go ahead. >> caller: send him up. you recommended dole foods, in the process of selling its worldwide packaged foods and asia fresh businesses. stock price dropped since september. do i sell, hold, or buy more
6:36pm
shares? >> i don't think it's that bad. i was surprised that the stock got hit as hard as it did, and i am inclined to be a buyer, not a seller. i would buy dole, d-o-l-e. randy in california. >> caller: randy from the cap r cappernick coast, first time caller. >> go ahead, i need to run this down. >> caller: deep in the money calls, and wondering if i will give a bump or a dump? >> i'm betting this one will bring home the proverbial applegate bacon or some bacon with no preservetives. i think hain is inexpensive. and irvin simon is money. the stock is hideous, but it doesn't mean the company is doing poorly. if it wasn't for this battleground, herbalife would be
6:37pm
a buy. but right now, strictly a spectator sport. just enjoy the game, don't get on the field. lightning round, coming up next. living with moderate to severe rheumatoid arthritis
6:38pm
means living with pain. it could also mean living with joint damage. humira, adalimumab, can help treat more than just the pain. for many adults, humira is clinically proven to help relieve pain and stop further joint damage. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. blood, liver and nervous system problems, serious allergic reactions, and new or worsening heart failure have occurred. before starting humira, your doctor should test you for tb. ask your doctor if you live in or have been to a region where certain fungal infections are common. tell your doctor if you have had tb, hepatitis b, are prone to infections or have symptoms such as fever, fatigue, cough, or sores. you should not start humira if you have any kind of infection. ask your rheumatologist about humira, to help relieve your pain and stop further joint damage.
6:39pm
6:40pm
it is time. it's time for the lightening round. and i tell them buy, buy, buy, sell, sell, sell. and when the time is up the lightning round is over. are you ready, skedaddy? max in new york. >> caller: jim, what's going on? >> i don't know. what's shaking with you? >> caller: big new york city new york mets booyah for you, baby. >> i'm a big fan of wright. i will give that to you. >> caller: how do you feel about solar city? >> i was very negative until i pulled up for a drink att frankie's, heath ledger's old hang out. and he said if you want a solar play, you should buy. i think this company say good
6:41pm
company. i'm not kidding, i think it works. nicholas in illinois. >> caller: hey, jim, a big windy city birthday booyah. it's my birthday. thank you for having me on. >> i like coffey smith more than the new guy, what do i know? >> caller: west port innovations, i am wondering what you see happening going forward? >> i like it, speculation, remember, i do believe that having natural gas is a surface vehicle is years and years away because our country doesn't embrace it. ed in minnesota. >> caller: hey, jim. >> what's up? >> caller: i wanted to ask you about amrn. what do you think about that stock? >> i think too much hot money in it. the people @jimcramer will hate me i say that. too much hot money in it. when you go @jimcramer, accuse me and not my family of all sorts of bad things.
6:42pm
ray in connecticut. ray. >> caller: hey, jim. a good booyah from pleasant valley, connecticut. a good yankee one. >> i'll see you in pleasant valley and raise you hartford. go ahead. >> caller: united technology. >> speaking of hartford, speak of the devil or the angel. i think that stock is terrific. trying to build a big position. my charitable trust. the best play in aerospace other than honeywell. no offense. jerry in new york. >> caller: hi, jim. how are you? >> real good, how about you? >> caller: good, thanks. big booyah from is a osyosset, island. >> i love the island. can't wait until it gets warmer. >> caller: see you then. can you give me your thoughts for chenier energy. >> 17, 18.
6:43pm
i want to make this point. a big run. joe in massachusetts. joe. >> caller: yes. >> patriot booyah. >> caller: hi, jim. listen, i want to give you double big booyah. listen, i watch your show all the time. i watched you do an interview with opko health care. thank you for that interview i have 35% gain. would you think this is a sign that opko diagnostic is getting closer to approval? >> i think it's a sign that dr. frost brings in his company as i do. and i endorsed. took a lot the heat on twitter. i say the stock is going higher. don't chase, the stock was languishing and when it pulls back is when you want to pull the trigger. joe in illini. >> caller: first time caller. i'm looking at chevron texaco. long on some of the february 115 calls. and i'm curious if this stock
6:44pm
has enough oomph to go from 117, 118, 120. >> i would probably go down to the february 105s. stock big upside. i wouldn't own it for the charitable trust otherwise. it will get to 120 just about the time of the march expiration, unless there is a sudden spike, and then it will be there in no time. i hope it doesn't happen. that's the conclusion of the lightning round. >> the lightning round is sponsored by t.d. ameritrade. we're sifting through your e-mails and tweets @jimcramer #madtweets. stick around. your question might be answered on the air. nd his new boss toldm two things -- cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find some good people to help guide him,
6:45pm
and he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade.
6:46pm
office superstore ink retailer in america. now get $6 back in staples rewards for every ink cartridge you recycle when you spend $50 on hp ink. staples. that was easy. ♪ [ male announcer ] some day, your life will flash before your eyes. make it worth watching. introducing the 2013 lexus ls. an entirely new pursuit. introducing the 2013 lexus ls. try running four.ning a restaurant is hard, fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores.
6:47pm
rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase. >>. >> time for some housekeeping on monday, jeff from nebraska called with a question on irwonwood pharma. it is an exciting pharma play that launched a drug that is designed to bring relief to people who suffered from
6:48pm
irritable bowel syndrome. it's up in anticipation of the launch. ironwood et's ood beat the street's earning earning expectations, with this small speculative stock, we care more about how the stock is doing. and it's slightly lower than expected. it could have a lot of potential. tens of millions of americans suffer from irritable bowel sin dream. it's too early to tell how well it will do in the mark place. the massive rally of the last two weeks, let it cool off. it might be too hot to handle. you want a drug stock. you can make some money in the boring majors. stick with a player like fizoo . bill asked me about senterus. i took a knee and went for the extra time, ala peyton manning.
6:49pm
u.s. a biopharma company, two products on the market to control blood sugar for patients with diabetes, and a drug for cholesterol. it has a drug for ulcerative colitis that just got fda approval this week, and it only trades at a slight premium to growth rate. i'm willing to give the stock my blissing, even though it's up very quickly. only for speculation. it can still run ahead of the colitis drug launch in march. this product looks exciting. i liked the stock seven years ago. like it now tweets. david spitsberg cpa. he asks any reason why the only major home builder stock was down? it was up a huge amount. it's been a monster performer. i prefer almost every other home builder to it. pulte home won the stock super bowl. the second tweet from andy.
6:50pm
please comment on that. nordic american tanker and what to do after the dividend slash. i don't like nordic american tanker. liked it for a while and the tanker business got really bad. we walked away from it, and i think it's probably with the dividend slash, seems like it's a bottom, i think the worldwide economy doing better. but we said that dividend would have to be slashed one day. what a terrible business. i think the business -- that might mark a bottom that dividend cut. wow. here is a tweet from @shab 27 who writes what do you think about prudential? strong earnings per share growth this year. i think it's good. i have decided the bigger bet should be on aig. a much less expensive stock than pru. i would buy aig at 35.
6:51pm
another tweet. darden restaurants. worthy of more homework, dividend portfolio or don't waste time? darden not well run right now, and i believe buying it and not worrying about the dividend would be too risky. you should stay away from darden. we need to see a couple quarters of turn. and what do you think about southern. >> i think southern is a great company. and so, like the stock. "mad money" back after the break.
6:52pm
6:53pm
6:54pm
time time to unwind one of the biggest trades i have seen in some time. the buy the big banks and sell the small ones trade. for the longest time, the large mutual funds have been buying bank of americas and citigroups and selling the smaller regionals, the bbts, first horizons, c-corp. the thought? the big banks are extremely undervalued versus where they have traded in the past and the regionals are hostage to the mortgage markets and interest rates are so low, they can't make much money lend for homes. i think we're seeing the big unwinding of that trade. first today we got some real ho
6:55pm
hummers,back of america and citigroup. bank of america, still after all of that, litigating all over the place. had to laugh today when the third bullet point in the bank of america release, total litigation expense, 0.9 billion, 5 cents a share. holy cow. that's a real highlight. the bank of america is a law firm masquerading as a lending institution. citigroup, still has a ton of dicey loans and not unlocking reserves, company is very cob servetive, not ready to return capital to shareholders, and you who knows how new management feels about emerging markets? and when you sack the cheap proponent of the go global strategy, and you put in a conventional bank, what does that say about the entire fund of the investing thesis? these two come on the heels of numbers from j. prchlp. morgan
6:56pm
wells fargo. but the action so to speak in the stock market is about the regionals. bb & t and citigroup, the numbers not that much better than the big boys. they are being rewarded instant well higher prices because they are perceived excellent, clean, noncoto versial ways to play the housing recovery. and they seem to be in better shape whether it comes to regulators and legal wranglings and clearly able to make more money than the money centers as a percentage of growth when things get better. more money, fewer problems and are getting better as kelly king said on "closing bell" a couple hours ago. how strongly i feel about this? i'm confident that first horizon, consistently delivered good numbers and not rewarded at all with higher stock prices will at least be given the credit that it's so sorely
6:57pm
deserves. my charitable trust is selling some wells fargo, because it does feel played out and swapping to a large position in key bank. cleveland based bank which reports next week. i'm considering telling you, oh, boy, that synovus, 2.60 some odd cent stock, it still owes t.a.r.p. money is a sense to buy. not because i love them. but large banks and the beginning of an affair with little guys will take sin over synovus with it. all i can say it's about time. stay with cramer. ♪ [ male announcer ] how do you make 70,000 trades a second...
6:58pm
♪ reach one customer at a time? ♪ or help doctors turn billions of bytes of shared information... ♪ into a fifth anniversary of remission? ♪ whatever your business challenge, dell has the technology and services to help you solve it.
6:59pm
♪ ♪ ♪ [ male announcer ] don't just reject convention. drown it out. introducing the all-new 2013 lexus ls f sport. an entirely new pursuit.